Thank desperate money managers for the market’s resiliency, Cramer said Tuesday. Every time stocks take a dip, hedge and mutual funds swoop in to buy.
That’s because many of them have no choice. They stayed negative on the market for too long and, as a result, missed the rally that started in early March. As the S&P 500 creeps into double-digit gains for the year, fund managers have to scramble to meet or beat that performance. They know their jobs are on the line if they fall too far behind their benchmarks.
Hence, the Dow’s early-day losses giving way to a positive close. Even the clients know that these funds are underexposed to stocks. Investors are threatening to withdraw their money, so the managers are buying everything they can on any pullback the market offers. When the futures this morning hit Apple , Joy Global , Wynn Resorts , Mastercard and Potash – all stocks that Cramer has been bullish on – that was enough to set off a big-money buying spree. And the same thing happened in the banks and oil and gas names.
It may sound overly simple, but this trend is driving the market’s key indexes right now. We’re in “get long or be wrong territory,” Cramer said, and the fund managers know it. They must come in and buy.
“Up double digits,” Cramer said, “there’s no hiding now.”
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